Keweenaw Report Your Source for Local News and Sports
The fee auto insurers pay, and pass on to its customers, into an insurance fund to cover large claims related to car crashes – is coming down.
The Michigan Catastrophic Claims Association says insurers will pay $150 per vehicle for 2015, down from $186 the previous two years. The assessment change marks the first time the assessment has fallen since 2008.
The fund covers no-fault personal injury claims in excess of $545,000. The fee reported paying $1 billion in claims in 2014, or about $149 per vehicle.
Michigan Insurance Coalition spokesman, Tom Shields, says a major reason for the reduction is that the MCCA’s investments performed well in the past year.
Josh Hovey, spokesman for the Coalition Protecting Auto No-Fault, which has been pushing for more insight into the MCCA’s finances, lauded but questioned the assessment cut.
